<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE RYLAND
GROUP INC. FORM 10-Q FOR THE PERIOD ENDED 9/30/98 AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS
</LEGEND>
<MULTIPLIER> 1000
       
                             
<PERIOD-TYPE>                   9-MOS
<FISCAL-YEAR-END>                          DEC-31-1998
<PERIOD-END>                               SEP-30-1998
<CASH>                                          48,196
<SECURITIES>                                   126,021
<RECEIVABLES>                                  125,724
<ALLOWANCES>                                         0
<INVENTORY>                                    627,943
<CURRENT-ASSETS>                                     0
<PP&E>                                          26,638
<DEPRECIATION>                                       0
<TOTAL-ASSETS>                               1,179,501
<CURRENT-LIABILITIES>                                0
<BONDS>                                        305,031
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                        441
<COMMON>                                        14,686
<OTHER-SE>                                     312,634
<TOTAL-LIABILITY-AND-EQUITY>                 1,179,501
<SALES>                                      1,168,687
<TOTAL-REVENUES>                             1,224,402
<CGS>                                          992,021
<TOTAL-COSTS>                                1,133,246
<OTHER-EXPENSES>                                11,089
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                              35,244
<INCOME-PRETAX>                                 44,823
<INCOME-TAX>                                    18,783
<INCOME-CONTINUING>                             26,040
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                (3,326)
<CHANGES>                                            0
<NET-INCOME>                                    22,714
<EPS-PRIMARY>                                     1.49
<EPS-DILUTED>                                     1.46